Coming Soon: American Water Works Earnings

Seth Jayson, The Motley Fool
Updated

American Water Works (NYS: AWK) is expected to report Q4 earnings on Feb. 26. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict American Water Works's revenues will increase 9.4% and EPS will contract -8.6%.

The average estimate for revenue is $699.6 million. On the bottom line, the average EPS estimate is $0.32.


Revenue details
 Last quarter, American Water Works booked revenue of $831.8 million. GAAP reported sales were 9.3% higher than the prior-year quarter's $760.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.87. GAAP EPS of $0.86 for Q3 were 10% higher than the prior-year quarter's $0.78 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 57.3%, 200 basis points better than the prior-year quarter. Operating margin was 39.4%, 260 basis points better than the prior-year quarter. Net margin was 18.5%, 40 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.89 billion. The average EPS estimate is $2.13.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 254 members out of 267 rating the stock outperform, and 13 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give American Water Works a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Water Works is outperform, with an average price target of $40.32.

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The article Coming Soon: American Water Works Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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